Sony will launch its Gaikai cloud service on PS4 and PS3 followed by Vita. It will grant immediate access to a catalog of PS3 games and it will spread and expand rapidly, Sony said. The cloud-based features on PS4 will launch sometime in early 2014.

Xbox One will support cloud technology and according to Xbox incubation and prototyping group manager Jeff Henshaw, the cloud will provide developers with the CPU and storage equivalent of three extra consoles.

In Final Fantasy VII, Cloud carries around like a really big sword. It’s as big as he is really, and I’ve often wondered how he could even hold the thing. Now, the guy who made a real-life version of the Minecraft diamond sword built this Buster sword, and it is completely ridiculous. Video inside.

Sony is shifting its platform “more and more” to the digital side of things, according to worldwide studios president Shuhei Yoshida. So much so, that every physical game released for PS4 will also be available as a digital download.

OnLive has announced it’s not only partnering with SRS Labs to deliver surround sound to users of its service in early 2011, but that until January 9 you can get 33 percent off the OnLive game system along with a free game of your choice.